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PREVIOUSLY HAD CAR FINANCE?

Claim Mercedes Finance Compensation

If you have ever had car finance from Mercedes Finance, you may be able to claim compensation if it contained undisclosed commission.

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If you have ever had a Mercedes car finance agreement before January 28th 2021, you may be able to claim compensation in light of a new FCA announcement concerning hidden commissions.

The Mercedes brand was established in 1926 and is a German high performing automotive brand manufacturing both luxurious and commercial vehicles. The brand’s headquarters are based in Stuttgart and in 2018, Mercedes-Benz was the largest brand of premium vehicles worldwide with 2.31 million passenger cars delivered to customers. Operating for almost a century, the Mercedes brand has created several of the world’s fastest cars. One of the most notable high speeds produced by Mercedes-Benz, the AMG GT Black Series, can attain top speeds of 325 km/h. An instantly recognisable and iconic automotive from the brand comes in the form of The G-Class, also known as the G-Wagon. The G-Wagon is a popular choice amongst footballers and a-listers and since its conception in 1979, the design has remained unchanged over the last four decades.

What Are Mercedes Compensation Claims?

A headline making update from The Financial Conduct Authority was released last week when it was announced that the independent body will be conducting an investigation into PCP and HP agreements to determine whether hidden commission payments were being earnt by brokers. This investigation has a huge scope and may potentially implicate millions of customers who bought their cars on finance. The purpose of the investigation by the FCA will be to determine whether or not discretionary commissions were made by brokers who were financially incentivised to offer customers higher interest rates in their agreements. The Financial Conduct Authority explained how it had been receiving customer complaints concerning motor finance firms potentially unfairly rejecting their otherwise legitimate mis-selling claims. Complaints from car finance customers are based around the belief that contracts were made more costly due to the dealership/broker earning a significant secret commission from the policy.

Since January 2021, the FCA has prohibited secret commissions of this very nature, however, despite this, they also stated that they have been contacted by over 10,000 car finance clients who believe they may have been overcharged in this manner. Alongside this latest investigation, The Financial Ombudsman Service (FOS) has also recently ruled in favour of two car finance customers on this particular matter which has led to the Financial Conduct Authority’s own investigation.

Mercedes-Benz sold 2,043,800 units in 2023 external link icon light blue alone and like many other car brands a large percentage will have been bought with the aid of a car finance policy. The Mercedes brand offers customers both PCP and Hire Purchase options to purchase their vehicles. For more than a decade, personal contract purchase agreements have been the most popular way to finance and purchase a car. PCP agreements were introduced over 10 years ago following multiple financial crises’ and have continued to increase in popularity over the years.

How Do I Know If I Have A Claim Against Mercedes?

If you are currently wondering whether you may or may not have a car finance claim against Mercedes in the not too distant future with regard to your car finance deal then keep reading. Do bare in mind that the FCA will only investigate car finance complaints that meet certain criteria. In keeping with the deadline that prohibited hidden commissions, complaints need to be made only for car finance agreements sold before the 28th of January 2021. In addition to preceding the deadline the car sale must have utilised a personal contract purchase or a hire purchase offering. Unlike a PCP agreement, a hire purchase agreement means the customer pays the value of the car in specific monthly instalments.

You will not be able to make a complaint If you bought a car on finance after the deadline or without PCP or Hire Purchase agreement. If you did purchase your car with the aid of car finance but it was on or after the 28th of January 2021 deadline, you will not be eligible for compensation. Secondly, a personal contract hire agreement complaint in which the car was leased will not be included. If you do not fit the hidden commission criteria, you may still have a car finance affordability claim if you can provide evidence that necessary background checks were not carried out by the lender or dealership who offered you the loan.

How To Make A Complaint Against Mercedes?

Firms have been instructed to stop responding to client complaints by the FCA. The pause began after 17th November 2023 and will end on the 25th September 2024 to allow the FCA to conduct their investigation. Whilst the investigation is taking place it is a good idea to get your complaint sent to the relevant firm as there is often a limitation period to be observed with such claims. For example, you are typically required to make your complaint to your provider within six years of the issue, or within three years of you becoming aware of the problem.

Here at Claims Bible we can help you kickstart your complaint in order to see if you may be eligible for a payout, click here to get going.

How much is a Mercedes Car Finance Complaint Worth?

Not even the FCA currently knows the amount of financial compensation that may be available to car finance customers in the future. In fact, The FCA has simply stated that it will “identify how best to make sure people who are owed compensation receive an appropriate settlement in an orderly, consistent and efficient way”.

 

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